In plain terms — Average of the last N prices: a line that «smooths» the chart and shows the slower direction beneath the noise.
A moving average (MA) is the arithmetic (or weighted) mean of the last n prices — typically closes. Each new bar updates the value by dropping the oldest.
It acts as a low-pass filter: attenuates short oscillations and passes slower movement.
| Parameter | Effect |
|---|---|
| Span (n bars) | Higher → smoother curve, more lag |
| Type | Simple (SMA), exponential (EMA), weighted (WMA) |
Generic vs cyclic use
In classic charting, MA signals trend (price above/below average). In cyclic analysis, span is not arbitrary: it isolates components near nominal durations (e.g. 10- and 30-period averages on weekly, with −½ span centering). See cyclic-moving-averages-hurst for the specialized use.
Cyclic averages (half-span, envelope) are specialized variants, not generic retail MA.